Simulation

Simulation is a tool which can demonstrate what-ifs. This technique is very useful if there is not a lot of historical data to go by, and you need to make assumptions about the behavior of some of your variables. Typically, you do not have a lot of data at this point, so you are really constructing your own data, based upon how you think it will behave.

In the later sections of the book, I will use simulation techniques heavily to illustrate this.